The urgency of climate change is clearer than ever, as emphasised by the 2023 Intergovernmental Panel on Climate Change (IPCC) report. Travel & Tourism is both heavily affected by its effects and a significant emitter of greenhouse gases (GHG), meaning the sector itself contributes to the problem. Decarbonising the sector rapidly is therefore critical to reaching net zero by 2050. Businesses are central to this effort, as their investments can drive positive change across entire value chains. Consequently, this report targets private sector leaders, with special focus on selected industries, namely accommodations, tour operators, aviation, cruise, and travel agencies – both online (OTAs), and traditional (TAs).

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With a growing urgency to decarbonise across the entire sector, efforts have ramped up in recent years, shifting focus from carbon neutrality towards a true net zero future. This means reducing GHG emissions to zero, avoiding them where possible, or balancing any remaining emissions by removing them from the atmosphere. This report offers an overview of where Travel & Tourism businesses in specific industries currently stand on climate action, highlighting the challenges, opportunities and needs they face. It also presents a ‘decarbonisation corridor framework’ to illustrate potential net zero journeys for various business types, along with guidance and recommendations for effective climate action.

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Highlights of the research include:

• Different industries within Travel & Tourism have varying environmental footprints due to their distinct business models and emission profiles. Even within the selected industries, there are notable differences, underscoring the need for tailored decarbonisation strategies.
• Across the sector, our analysis reveals that while progress has been made, there remains significant room for expanding climate action efforts.
• Of the 250 businesses analysed, 53% have defined a climate target. Of those, 33% are aligned with the Science-Based Target initiative (SBTi) guidance.
• There exists a diverse range of targets across and within the focus industries, differing in metrics, timelines, baselines, and levels of emission reduction commitment, making direct comparisons challenging.
• The entire sector, and individual businesses, need greater alignment, transparency, and consistency in emission monitoring. Currently, the quality and reliability of available data are insufficient, which limits informed decision-making. Regular, comparable insights on Travel & Tourism’s emissions are needed for monitoring progress over time, identifying needs, and setting action priorities.
• Continuous monitoring of climate commitments and actions is crucial to improve understanding about the current status quo, measure progress, and assess the potential impact of various efforts to transform the sector.
• All industries face common challenges, including difficulties in measuring emissions - especially Scope 3 emissions, along with a fragmented regulatory landscape, limited government support, inconsistent reporting standards, and insufficient budgets (both internal and external) to support a net zero transition.
• Small and medium-sized enterprises (SMEs) have a harder time defining and following strategic decarbonisation plans, highlighting the need for an inclusive approach in the sector’s fight against climate change.

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**Proposed Target Corridor Framework **

To cater to the identified need for further guidance and accelerate existing climate action, a new decarbonisation target corridor framework is presented in this study, comprising three corridors. The short-term corridor (2020-2030), focuses on achieving carbon neutrality through a combination of emissions reductions and removal. The medium-term corridor (2030-2040) aims for net zero emissions across Scope 1 and 2. The long-term corridor (2040-2050) targets net zero across Scope 1, 2, and 3, covering the entire value chain from direct to indirect emissions. Travel & Tourism businesses should ideally set targets across all three timeframes to ensure a balanced and phased approach. To support the achievement of these targets, the roadmap provides an overview of key decarbonisation levers and corresponding action items for each industry in scope.

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**Call to Action **

The target corridors demonstrate that ambitious, tailored decarbonisation strategies could enable some Travel & Tourism industries to reach net zero even before 2050. To heighten ambitions, businesses should:

1. Set appropriate baselines and emission targets to achieve individual and sector goals for 2030 and 2050
2. Monitor and report progress regularly
3. Collaborate within and across industries
4. Secure the required finance and investment for the transition
5. Raise awareness and strengthen climate-related skills and capacities
6. Move from planning to implementing net zero actions

• Context
• About This Report
• On The Way Towards Net Zero - A Status Quo Analysis
• An Updated Target Framework For The Travel & Tourism Net Zero Journey
• A Guide To Decarbonise The Travel & Tourism Sector